Author: ACI
Date: 2024-10-07
ARFC has been updated with latest Risk Parameters provided by Risk Service Providers. 2024-10-11
Summary
This proposal aims to launch GHO on Avalanche and set ACI as Emissions Manager for GHO and aGHO potential rewards and incentives.
Motivation
With a dedicated portion of GHO supply moving to the Arbitrum network and the generous grant from the Arbitrum DAO as part of the LTIPP, Aave DAO successfully bootstrapped GHO liquidity both within the Aave protocol and throughout the Arbitrum ecosystem.
Building on this success, it is now time to expand GHO to other networks. However, the lessons learned from the Arbitrum launch highlight the importance of coordinated efforts in several key areas:
- Implementing the necessary smart contracts and infrastructure to support GHO on the network
- Establishing appropriate risk parameters and collateral requirements specific to the Avalanche ecosystem
- Integrating GHO with existing DeFi protocols and applications on Avalanche to foster immediate utility
- Collaborating with the community to ensure a smooth launch and widespread adoption
These factors underscore the significant effort required from all service providers to create a successful launch. This ARFC vote seeks community approval to proceed with the launch of GHO on Avalanche.
Specification
The ACI invites all service providers to provide input on their scopes within this proposal.
The proposed launch of GHO on Avalanche will involve the following key components:
- BGD and Avara to implement and deploy the necessary smart contracts for GHO on the Avalanche network, including cross chain bridge infrastructure and addition to Aave v3 Avalanche.
- Risk service providers and finance service providers should collaborate on appropriate risk parameters and collateral requirements tailored to the Avalanche ecosystem. From learnings on Arbitrum launch, ACI suggests a $25m starting bridge cap to allow for growth using the planned programs from the Avalanche ecosystem.
- ALC will create a plan to bootstrap initial liquidity for GHO on Avalanche, potentially including incentives or partnerships with existing Avalanche protocols.
- ACI will coordinate with Avalanche ecosystem teams to promote the GHO launch with appropriate support and incentives. The Avalanche ecosystem has previously signaled a large commitment to supporting GHO’s launch on the network.
- ACI will be the Emission Manager for GHO and aGHO potential rewards and incentives.
- ACI multisig address:
0xac140648435d03f784879cd789130F22Ef588Fcd
The exact timeline and detailed technical specifications for each component will be determined by the service providers and presented in subsequent AIPs, pending the approval of this ARFC.
| Parameter | Value |
|---|---|
| Asset | GHO |
| Market | Avalanche |
| Isolation Mode | No |
| Borrowable | Yes |
| Collateral Enabled | No |
| Supply Cap | 5,000,000 |
| Borrow Cap | 4,500,000 |
| Debt Ceiling | - |
| LTV | - |
| LT | - |
| Liquidation Bonus | - |
| Liquidation Protocol Fee | - |
| Variable Base | 0% |
| Variable Slope1 | 12% |
| Variable Slope2 | 65% |
| Uoptimal | 90% |
| Reserve Factor | 10% |
| Stable Borrowing | Disabled |
| Flashloanable | Yes |
| Siloed Borrowing | No |
| Borrowable in Isolation | No |
| E-Mode Category | N/A |
Useful Links
Avalanche's Proposal on Temp Check: Rollout Plan for Cross-Chain GHO
Disclaimer
The ACI is not presenting this ARFC on behalf of any third party and is not compensated for creating this ARFC.
Next Steps
- If consensus is reached on this [ARFC], escalate this proposal to the Snapshot stage.
- If the ARFC snapshot outcome is YAE, service providers will proceed with the appropriate AIPs.
Copyright
Copyright and related rights waived via CC0.
Off-Chain Vote
YAE
771.13K AAVE100%
NAY
0.07 AAVE0%
Abstain
0.04 AAVE0%
Timeline
Oct 14, 2024Proposal created
Oct 15, 2024Proposal vote started
Oct 18, 2024Proposal vote ended
Feb 12, 2026Proposal updated